Buying into the Budapest boom
As with a number of other eastern European countries, it was felt that prices could only go in one direction. While this has ultimately proven to be correct, the voyage has not all been plain sailing. Much like Ireland, prices did grow spectacularly until 2008 – when the majority of the world’s economies hit a brick wall. Hungary’s property market didn’t actually bottom out until 2013, from whence a faltering recovery has quickly become an overheating market. The rapid turnaround in Hungary’s previously precarious economy is often referred to as “Orbanomics” after its leader since 2010, Viktor Orban. Quite a few economists query the veracity of the figures, but in some quarters it is being termed an “economic miracle”. Ring any bells?
Budapest is unlike many other areas where purchases were made overseas. Other markets were often dominated by off-plan purchases and became so distressed as to either prevent building or force owners to walk away due to severe negative equity. Many properties in Budapest were already built and most off-plan purchases were eventually built. Anecdotal evidence suggests that a lot of Irish owners held on to their properties. Following some turbulent years this may ultimately prove to be a wise decision.
Read more: The Irish Times